2016 has had a busy start for the Chartered family. Incredible as it seems, we are at the beginning of our second month of the year. It is, however, not too late for me to wish you and your families a happy and successful year ahead.
In this newsletter, I would like to address what has been happening in both the South African and global markets – we tend to receive many more queries when there is uncertainty in the economy.
Towards the end of 2015, the markets were looking a little more volatile than they had been in the previous five years. Then, in a move that shocked not only his own government but the rest of South Africa, President Zuma fired Finance Minister, Nhlanhla Nene, on 9 December. Local and international reaction led to the Rand plummeting against all the major currencies.
But, strange to say …
What has been interesting is the JSE. It is down 3.64% over the past 12 months to end of January, while the New York Stock Exchange … wait for it … is down 9.9% over the same period! The FTSE has lost 10% this year alone. So, while we feel the negativity and see it in the media, the South African stock market has become quite robust. The reason for this is that most of our major Shares are either dual listed or earn most of their earnings in foreign currency, thereby protecting it against the falling rand.
So, yes, in Dollar terms we are all a little worse off, but from a return on investment in Rands, we are looking as good, if not better than most of our larger Stock exchanges. Let’s not forget that we have enjoyed a seven-year bull run and, if we all stick to our plans, we will all get through this period of uncertainty unscathed. I find the the words of American Writer, Ralph Waldo Emerson apt:
This time, like all times, is a very good one, if we but know what to do with it.
News from Chartered
About two years ago, Chartered started customising a new client data and financial planning system for Chartered. We reached a point in October last year where we transferred most of our data onto the new system and are rapidly moving to the position where we can switch off the old system. Unfortunately, some of you may have received some communications from us without the correct details. Please bear with us during this transition – with IT, it is never a seamless process, but given time, all will be well.
We are well into our annual roadshows around the country and look forward to seeing you at the various events.